prices continued their upward momentum on Wednesday morning during Asian trading, once again hitting fresh lifetime highs.
Despite my sell side recommendations over the past two sessions, precious metals have extended their rally, with Gold February Futures reaching a new record high near $4890.35 per ounce, compared to $4539.10 last Friday, rise of nearly 5% in just two sessions. prices also remain in an uptrend, though today’s movement has been relatively muted compared to gold.
The surge in gold is primarily driven by US/EU trade tensions and escalating geopolitical risks, which have significantly boosted safe haven demand. The rally was further supported by Donald Trump’s threat to impose additional tariffs on eight EU countries over Greenland, alongside Denmark’s decision to strengthen its military presence in the region. As a result, volatility in gold and silver remains elevated.
Meanwhile, the weakened, falling to around $98.025, reinforcing gold’s strength due to their inverse relationship. Major currencies such as the Euro and British Pound have also gained in this risk-off environment.
Why a Downside Correction Is Expected in Gold Today
1. At current lifetime high levels, profit booking is likely ahead of major global market openings.
2. The Gold and Silver ratio, which touched a 14-year low yesterday, is showing signs of corrective buying in silver, potentially weighing on gold prices.
3. A sharp correction of more than $120 in gold cannot be ruled out before major markets open.
As emphasized earlier, intraday trading remains the safest and most effective strategy in such highly volatile market conditions.
Intraday Strategy – Gold February Futures
Sell: $4890 – $4900 per ounce (near lifetime highs)
Stop Loss: $4940
Downside Targets:
TGT 1: $4761.90(Today’s Low)
TGT 2: $4740
TGT 3: $4700
If profit booking accelerates, gold could see a sharp intraday correction, with silver also expected to weaken, potentially slipping below the $90 level in the next few hours.
